• As adoption for tokenized assets surge amongst banks and capital markets, Chainlink attempts to serve the billion-dollar market strategically. 
• The founder of Chainlink details the network’s plans to help capital markets freely and effectively interact with Blockchains. 

Chainlink is tapping into a billion-dollar market with its latest move. The Chainlink blockchain has been a hot topic amongst community members after key figures in the ecosystem highlighted the long-term possibilities and milestones that Chainlink could attain.

Asset tokenization refers to the use of smart contracts and blockchain technology to represent ownership or rights to an asset as a tradable, on-chain token.

As tokenized assets grow in popularity, traditional banks across the world have begun to embrace the advantages and benefits that come with these assets, and Chainlink is positioning itself as a bridge between tokenized assets and banks.

Chainlink is a decentralized oracle network that is regarded as an industry-standard Web3 services platform. The network has made its mark in the industry as a platform that allows smart contracts to automate the transfer of data between blockchains and outside systems in a highly secure and reliable manner. However, Chainlink intends to make an even bigger impact by meeting the needs of billion-dollar banks.

Notably, banks are reportedly looking to create more advanced applications on-chain. Chainlink has decided to step in by providing a single, universal interface that caters to all of these financial institutions that are looking to gain access to the budding Web3 market.

In a recent presentation, Sergey Nazarov, an investor, and entrepreneur, who is also the founder of Chainlink, details the network’s long-term goals regarding tokenized assets and traditional banks. According to Nazarov, Chainlink is committed to serving Capital markets and banks.

Chainlink’s founder says the project is working with billion-dollar banks

Targeting and making room for proper interaction between Blockchains in an effective manner is at the core of this commitment.

The final thing that we are doing in addition to providing the technology and creating proper incentive alignment without conflicts of interest, secure and hyper reliable, and we can continue to grow it in a sustainable way and justifiable way, so that the cost expanded by growth that the security provides, and that it continues to provide security at a larger and larger scale, capital markets participants, namely banks that have trillions of dollars will continue to use it more and more.

He goes on to make an even bigger case for why the Web3 ecosystem, alongside Capital Markets, needs a secure connectivity layer, by noting that there has been a rise in the creation of stablecoins over the years. Large banks have reportedly created their own stablecoins in previous times.

The National Bank of Australia, the Central Bank of Nigeria, and the Bank of New Zealand are some of the many banks attempting to introduce stablecoins into their customer base. In addition, Russia and Iran are now discussing joint gold-backed stablecoins.

Speaking to this effect, the founder of Chainlink explained that my work between me and Brooklyn Decker’s large banks is reaching out to the Netwerk and discussing topics related to building even more advanced applications.

The Network is also strengthening its partnerships with other banks, as it welcomes a larger number of banking clients. Essentially, banks are willing to move from a concept stage to a production stage by investing from their trillion-dollar revenue.

We’ve already seen people make stablecoins from banks. Large banks actually create their own stablecoins and put them onto chains and we’ve seen more and more of them start to talk with us about building more advanced applications. We are working with an increasingly large amount of banks, and some of the things I am seeing that they’re suggesting to me that things will move beyond a proof of concept, into a pilot and into production, and just to be clear on what moving into production means, banks have trillions of dollars.

The next step necessary for industry growth, as Nazarov added, is for engagement to come from larger institutional players, although prop traders and institutions are expected to partake in the industry however they want.

With big players involved, the industry becomes an even more superior system, Nazarov concludes. On a final note, chain-link is working with some of the biggest capital markets, to provide even more efficient alternatives amongst these markets. He asserted;

So the final thing that we are doing is working with large capital markets institutions to enable them to access these conflict of interest free, reliable and tamper proof alternatives and offer them to their clients in large volumes and in a very usable way.

In the long run, the adoption of Chainlink from capital markets on lead in traditional banks is poised to skyrocket in the near future.

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